Every candle tells a story

Develop Your Forex Strategy - Every candle tells a story



Ignore at your peril candlesticks when developing your Forex strategy. Lighthouses contains a huge amount of market information. Learn to read candlesticks like the book and significantly improve the profitability of your Forex strategy.

Used by Japanese traders for centuries, the Western world has only recently (around 1991) become aware of their value due to the work of Steve Nison.

Candlestick charts are now probably the preferred medium for most retailers due to their visual effect. Like bar charts, candlestick charts is based on four key pieces of information about the timing chart (15 minute, 1 hour, 4 hour, day, etc.) - to open and close prices for a timeframe, plus high and low points in this period:

* High
* Low
* Open
* Close

However, presenting this information graphically, in the form of a candle, the merchant is able to absorb the glut of information on a trading period with just a glance.

So learn to read and candles - your Forex strategy will be more solid as a result.

What's in the Candlestick?

What you can read from a lamp?

Certainly not enough to establish trade Mon However, a typical lamp in combination with other indicators can be very significant.

When reading candlesticks it helps to think the battle is constantly going on in the market place between the bulls and bears. A beacon will tell you how the battle went in any given period.

Take for example an hour lamp table which has a long rigid body and little if any shadows. If the candle color is green, or whatever color charting package uses when a candle closes more than ever open it, it means that either the bulls are in firm control, or has little or no interest from vendors.

If the candle is red, or whatever color charting package uses when a candle closes lower than when it opened, it means that either brings in firm control, or has little or no interest from buyers.

If a solid body of the candle is small, but there is a long upper shadow and long lower shadow, this means that during the 1 hour period, bears the trade at the lowest point, the Bulls are the highest price point, but neither can maintain position, so the end of the period is close to where it was initially.

Take a series of those candles and the market is evident in the indeterminate state, or reconciled to trade within the range in the near future, while another stimulus comes along, such as basic listing, cause prices to break through the channel.

Distinctive candles should know

Candles come in all shapes and sizes with very specific names such as spinning tops, doji, hammers, etc.

Learning to read candles on understanding other technicals as pivot points and support / resistance lines, Fibonacci retracements and trendlines can add real power to your Forex strategy.

Remember, when watching your charts, each candle tells a story. It is up to you to decipher and interpret the meaning. The level of skill to develop it would be a major factor in developing a profitable Forex strategy.

stock chart heiken ashi
forex indicator ssl bar 3
mtf aroon
what is a 3 level zz semafor indicator